I work on implementing a simple dependently typed language. I want to implement inductive types there. However, I want them to be well formed. From what I've seen in Coq not all types are acceptable. What can I read about them? Could give a simple enough well-formedness condition which I can use?

I don't know to what extend modern Coq has diverged from what's described in that paper. Either way, none of those is easy reading. You're probably better off to look at a Coq manual and copy the well-formedness conditions imposed there.